Okay, it’s official– the world is coming to an end! What was up, is now down; what was true, is now false; the devil is winning. Pay attention now…
According to this study (see link below) by the Institute on Alcohol Abuse and Alcoholism (a redundancy if ever there was one), increased taxes on cigarettes have led to decreased drinking in certain subsets of the study. They go on to state that cigarette taxes are one of the most effective “policy instruments” in reducing smoking; and now, the additional healthy benefit of a reduction in drinking can be attributed to taxes as well! You got all that? Taxes are god for your health! Hallelujah!
If you’re unfamiliar with the term ‘sophism,’ what you’re reading in this ‘study’ is a precise definition of it. The study purposefully leads you to believe that it is TAXATION that is the sole cause for this decrease in a particular behavior when , in fact, it’s not. Sure, the PRICE of an item may definitely affect a consumer’s desire to use a product, and that’s always been a force of a free market system. To imply, however, that a tax is the same thing as a price increase is unconscionably egregious.
Price changes allow a consumer to choose between goods– taxes attempt to force a modification of your behavior by singling out a particular product or industry; they admit it themselves in this study.
But what’s really going on here is this– if cigarettes are so bad for you, WHY AREN’T THEY BANNED??? It’s simple– the tobacco industry (along with alcohol and firearms– yeah that’s right ATF) generate so much state and federal tax revenue that no self-respecting crony capitalist would ever let THAT kind of money get away. I’ll give you an idea of what kind of $$ is involved. In about 1985, Gramps visited a small distiller in the state of Tennessee. As we toured the facility, our guide broached the subject of federal taxes. He noted that even a small distiller like him had to pay the Federal government $500,000 EVERY TWO MONTHS or the Feds could shut him down. “But that’s nothing,” he added. Asked if we knew who R.J. Reynolds was, he informed us that they had to pay $1,000,000 PER DAY to keep their operation going– and these were just FEDERAL taxes. Yep, that’s $365,000,000 per year just from one company–AND THAT WAS ALMOST 30 YEARS AGO!! Imagine what the dollars are like now! (Actually, you can visit the U.S. Department of Revenue web site and find out for yourselves– and it’s a LOT)
Additionally what is at play here is that if taxes do influence people to smoke and drink less, then that means a reduction in revenue. Well, they can’t let that happen, so they’ll need to raise taxes to maintain the revenue stream… and guess what? It’s not only good for them IT’S HEALTHIER FOR YOU,TOO! Can you say win/win?
Okay, that’s enough for now, but I reiterate, PAY ATTENTION! This kind of nonsense is all over the place nowadays. If you don’t, you deserve what you get!
http://healthyliving.msn.com/health-wellness/cigarette-taxes-deter-heavy-drinking-study-suggests